Tesla Leases 1 Million Square Feet Of Warehouse Space Branching Out From Bay Area

In its preparation to significantly ramp up production, Tesla Motors leased two buildings in Livermore, 20 miles out from its factory in Fremont. The two buildings at the Oaks Logistics Center, developed by Trammel Crow Company, total over 1 million square feet, with the option of more.

The first building rings in at 635,000 square feet alone. Another building (known as the Building 3) adds 368,000 more square feet of space. Apparently, Tesla could be planning to lease the 300,000 square foot Building 2 as well if needed. The buildings are adjacent to the Livermore Municipal Airport, and will mark some of the largest industrial space in the Bay Area. The property will also boast LEED Silver energy efficiency rating credentials. John Boyd Jr., a site selection expert explained:

“Sure, we get it about the traffic and timeline between Fremont and Livermore, but the site, its LEED credentials, its central location, interstate access and exposure all carry the day here.”

Boyd also assumes that Musk could have additional plans for the space. He said:

It could “play a role in Elon Musk’s interests in serving The Bay Area in sectors, including solar and who knows — intergalactic travel.”

Sources are reporting that the site will be used primarily for warehouse space and storage. Up until now, Tesla has packed its Fremont factory full, and the focus there needs to be solely on manufacturing.

Tesla is continually adding real estate to its portfolio. Last year it acquired a 300,000 square foot building in Fremont that is now completed and operational. Following this, another Fremont building was leased. A 500,000 square foot manufacturing building. Now, however, it appears that the company is branching out further from Fremont to increase the worker base.

Tesla and all other parties involved have declined to provide any further details. Sources say that the company is paying 57 cents per square foot per month for the new space. Availability in the area is very slim, and the Silicon Valley and East Bay areas are completely saturated. Most new development near Fremont is already set aside for other companies.

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This makes a lot of sense. The Tesla factory had a lot of square footage dedicated to warehousing in the empty spaces not used for assembly. They have to get all the warehousing, logistics, and parts manufacturing out of the main factory in order to devote that area to new assembly lines and JIT parts flow.

I have a hangar at the Livermore Airport and walk my dog in the area where the warehouses are being built. The site has been zoned light industrial for 10+ years but it’s been sad seeing the open space (formally farm fields) finally disappear. The buildings are huge and generic looking.

Elon mentioned that the factory can actually build close to a million cars a year. I’m sure he meant that Tesla plans to streamline the factory for assembly and production. A lot of the space can be better used for manufacturing and not basic storage and minor assembly. That can be moved to these buildings.

Tesla not only needs to move storage out of the Fremont plant. Over the next year or so, they will also need to move as much as is practical of the parts and subassembly manufacturing out of its one and only auto assembly plant. Tesla has a much higher ratio of workers to finished cars as bigger auto makers, and a large part of that is all the in-house manufacturing and subassembly work. Much or most of that could as easily be done in other buildings, leaving as much floor space as possible in the Fremont plant for auto assembly lines.

And if Tesla is serious about ramping up as fast as this new plan indicates, they need to get moving on building or renovating a second auto assembly plant, in either Asia or Europe. Or if they’re really thinking ahead, both.

Not gonna bother with the link – Zynga’s building now worth more than the company (stock).

I thought it was a grin, and No, prophetic self-aggrandizing Teachers, I’m Not a short, ROFLMAO at the thought anyone would Bother and that YOUR wisdom was needed to point it out if someone Did. Please examine your precepts..
carefully